In NCCI’s State of the Line Presentation, Glenn Notes Frequency Decline, Exceptions

Conference Insights

Anyone who's followed workers' compensation over the past decade and a half is aware that, across the board, frequency is down, meaning that fewer workers each year file workers' compensation claims.

Since that's been the general rule for so long, exceptions to the rule create curiosity, and at NCCI's Annual Insights Symposium, Chief Actuary Donna Glenn noted that in Nevada, Washington, D.C., and among different industries, frequency tells different stories.

Nevada, D.C.

What happens in Vegas doesn't always stay there, and the rest of the country can see that Nevada has experienced a recent uptick in claim frequency since the pandemic.

Glenn explained that trend is due to a surge in tourism after COVID restrictions expired. That surge caused new hiring, and new hires are among the most likely to get hurt at work.

The story in Washington, D.C., is similar, according to Glenn, but in addition to a post-pandemic tourism boom, D.C. has also seen growth in office workers.

New workers in new jobs bring less experience and a great potential for injury, especially compared to the days of tourism restrictions and work from home roles.

What's Going on with Frequency?

When it comes to frequency, the trend across injuries was downward in the past year.

"Overall, we've had a 6% decline in frequency," Glenn said. "Construction had the lowest frequency and steepest frequency decline."

On the other hand, healthcare saw higher frequency.

"Frequency ticked up in healthcare," Glenn explained. "It's been due largely to newer employees and workplace violence in recent years."

In the office sector, while frequency has, of late, been lower than average, it ticked up last year.

"This increase has been driven by an increase in motor vehicle accidents, particularly among sales personnel," Glenn said.

Overall, where changes have been seen in terms of increased costs, it hasn't been with price, Glenn noted, but in utilization.

"Price has been consistent year over year, but utilization has been more volatile," Glenn said. "Increases in cost aren't drive by price but utilization, something we call the claim risk shift."

Share This Article: